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First Discussant Comment on “Fiscal Policy as a Stabilization Tool”

First Discussant Comment on “Fiscal Policy as a Stabilization Tool” The B.E. Journal of Macroeconomics Special Issue: Long-Term Effects of the Great Recession Volume 12, Issue 3 2012 Article 15 Silvia Ardagna* *Silvia Ardagna worked on this paper before joining Goldman Sachs and the views expressed in the paper do not reflect official positions or views of Goldman Sachs. Silvia Ardagna, Goldman Sachs, silvia.ardagna@gs.com. DOI: 10.1515/1935-1690.114 Copyright ©2012 De Gruyter. All rights reserved. The paper by Antonio Fatás and Ilian Mihov touches upon very important issues for policymaking and the design of fiscal systems and institutions. The paper's main focus is to characterize, from a theoretical and an empirical point of view, how fiscal policy responds to the business cycle, paying particular attention to the behavior of automatic stabilizers. This is an important contribution to the literature because very little work has been done on automatic stabilizers and their potential role as a policy tool to smooth business cycle fluctuations. Automatic stabilizers could play a larger role helping to lean against the wind, as this part of fiscal policy is not subject to decision and implementation lags. The paper's main message is that the government's size matters and helps stabilize business cycle fluctuations. However, in my view, this http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The B.E. Journal of Macroeconomics de Gruyter

First Discussant Comment on “Fiscal Policy as a Stabilization Tool”

Ardagna, Silvia
The B.E. Journal of Macroeconomics , Volume 12 (3) – Oct 25, 2012
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Publisher
de Gruyter
Copyright
Copyright © 2012 by the
ISSN
1935-1690
eISSN
1935-1690
DOI
10.1515/1935-1690.114
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Abstract

The B.E. Journal of Macroeconomics Special Issue: Long-Term Effects of the Great Recession Volume 12, Issue 3 2012 Article 15 Silvia Ardagna* *Silvia Ardagna worked on this paper before joining Goldman Sachs and the views expressed in the paper do not reflect official positions or views of Goldman Sachs. Silvia Ardagna, Goldman Sachs, silvia.ardagna@gs.com. DOI: 10.1515/1935-1690.114 Copyright ©2012 De Gruyter. All rights reserved. The paper by Antonio Fatás and Ilian Mihov touches upon very important issues for policymaking and the design of fiscal systems and institutions. The paper's main focus is to characterize, from a theoretical and an empirical point of view, how fiscal policy responds to the business cycle, paying particular attention to the behavior of automatic stabilizers. This is an important contribution to the literature because very little work has been done on automatic stabilizers and their potential role as a policy tool to smooth business cycle fluctuations. Automatic stabilizers could play a larger role helping to lean against the wind, as this part of fiscal policy is not subject to decision and implementation lags. The paper's main message is that the government's size matters and helps stabilize business cycle fluctuations. However, in my view, this

Journal

The B.E. Journal of Macroeconomics – de Gruyter

Published: Oct 25, 2012

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